Company's third online gaming agreement with major portal

LONDON, England - January 5, 2006 - FUN Technologies plc ("FUN"), one of the world's leading online casual gaming providers, announced today that its wholly owned subsidiary, SkillJam Technologies Corporation ("SkillJam"), has signed a comprehensive agreement to create a private-label casual-gaming platform for Lycos, Inc. (www.lycos.com), a leading media destination for creators and consumers of quality content, and one of the most visited portals on the Internet.

SkillJam will develop, operate and support the pay-for-play casual gaming for Lycos Games, customizing the gaming platform for Gamesville.com (www.gamesville.com), Lycos' gaming channel. Scheduled to go live in early 2006, the site will feature a full casual-gaming solution, which will allow players to select pay-to-play, monthly subscription, or download options. In addition to its own proprietary games, Gamesville will offer traditional tournament-style games for cash and prizes, as well as a revolutionary level of community features including avatars, leader boards and private gaming leagues. Once launched, the SkillJam-powered Lycos gaming platform will be one of the most comprehensive casual gaming environments in the online market with cash skill games, subscription and download games.

SkillJam is a multi-channel provider of skill-gaming technology and solutions. It develops and distributes private-label gaming solutions for a broad network of partner destination sites in the US and abroad, including AOL, MSN's Zone.com and Real Networks.

Lycos, Inc. creates and operates search, community and technology lifestyle sites including Lycos.com, Hotbot.com, Wired.com, Tripod.com, Angelfire.com and Quote.com. Other Lycos products and sites include Lycos Mail, Gamesville and GetRelevant.

Lorne Abony, CEO of FUN Technologies, said, "This is the first '360-degree' solution for skill-based casual gaming. Our complete end-to-end solution will not only allow players to play their favorite skill games to win cash, but will also let them play for free or download the game of their choice. We are the only casual gaming company capable of offering cash, subscription and downloadable gaming in our offering."

"We are thrilled that Lycos has chosen to augment its existing advertising-supported gaming platform with SkillJam's pay-for-play gaming platform. For the first time ever, users will be able to play the game of their choice on a free, pay-for-play, subscription or download basis-all via a 'one-wallet' system. This deal marks our third agreement with a major portal, and is a true testament to our continued success in the casual gaming sector."

"By teaming with SkillJam, we can now offer our millions of users a complete integrated gaming solution with Lycos Games, giving users the ability to play games the way they want to play them," said Brian Kalinowski, Chief Operating Officer for Lycos, Inc. "SkillJam provides the best content for casual games available anywhere on the web, complimenting our Lycos strategy going forward."

Lycos, Inc.

Kathy O'Reilly, Director of PR
Phone: 781.370.2700

About FUN Technologies plc

FUN Technologies plc is one of the world's leading online casual gaming providers. FUN's strategy is to provide its cutting-edge, person-to-person gaming systems to top, licensed distribution partners in regulated markets around the world. FUN is a public company, incorporated in England and Wales, and is listed on both the Toronto Stock Exchange and the Alternative Investment Market (AIM) of the London Stock Exchange under the symbol "FUN".

About Lycos, Inc.

Lycos is one of the original and most widely known Internet brands in the world, evolving from one of the first search engines on the web, into a comprehensive network of social media web sites that foster online communities.

>Lycos has been a pioneer in intelligent spidering search technology, combining its proprietary technology with other best in class search services to provide a powerful and relevant search experience for its users.

Times change, and Lycos has changed with them, evolving into digital media power house with two major divisions

Lycos, is a network of easy to use community and social sites. Lycos's award-winning products and services include tools for blogging, web publishing and hosting, online games, e-mail, and search. The Lycos Network of sites and services include Lycos.com, Tripod, Angelfire, HotBot, Gamesville, WhoWhere, and Lycos Mail. Integrated, these sites help in bringing people together to interact, conduct commerce, have fun, and experience the best the Internet has to offer, is in our DNA. We offer 40 Local Sites in 120 Languages with a community spanning across 177 Countries. Lycos consistently averages 12 - 15 million monthly unique visitors in the U.S.

Lycos employs over 500 people working out of 24 offices worldwide, including the US, Argentina, Brazil, Chile, Uruguay, Mexico, the UK, France, Germany, Italy, Ukraine, Sweden, Serbia, Israel, China, Thailand, Panama, India, Emirates, Russia and Australia, and with representatives or partners in Spain, South Africa, and The Netherlands.

Disclaimer
This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behavior of financial and digital marketing industry, and fluctuations in exchange rates; from future integration of businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different from those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.